Staff at the University of Stirling have been invited to apply for severance packages and told £8 million of savings must be made in this financial year.
In correspondence seen by The Courier, principal and vice-chancellor Professor Sir Gerry McCormac wrote that the university was in “a position of strength” and had increased its income by more than £50m since 2019-20.
He then revealed the news of the planned cuts, totalling £8m, and announced the voluntary severance scheme.
Employees say the decision has prompted worry over their jobs and the university’s future.
But Stirling University maintains there is no crisis – it is making tough decisions now to protect the institution financially going forward.
University ‘making difficult decisions when necessary’
The letter to staff, sent on June 16, reads: “We’ve weathered these uncertain times by striving to do the right thing – governing well, managing our finances responsibly, and making difficult decisions when necessary.”
It goes on to explain that the organisational structure of the university will change.
“This means realigning the size and shape of the institution to ensure that our structures and services are fit for purpose, our resources are focused where they are most needed and are fully aligned with the strategic priorities that will drive our long-term success,” the letter continues.
Sir Gerry received criticism earlier this year as a result of his £414,000 annual salary, which rises to £438,000 when pension contributions are included.
He became Scotland’s best-paid higher education chief, following a £119,000 pay increase in two years.
Stirling University said the wage is “appropriate to the size and scale of the job.”
In its latest available accounts, from the financial year 2023-24, the institution reported 5.6% total income growth, with a turnover of £179.2 million and a surplus of nearly £7m.
Last month, the university agreed to pay a construction company up to £8m over four years to undertake a mixture of scheduled and unplanned maintenance and refurbishment work, as well as supporting the in-house maintenance team.
Voluntary severance scheme open until August
Stirling University’s current voluntary severance scheme was launched on June 19, and employees have until August 29 to apply.
Applicants will be informed of the outcome by early October, and anyone leaving their role as part of the scheme will be gone by the end of November.
Severance packages of up to 12 months’ pay are reportedly on offer for employees.
The university describes the scheme as “an opportunity for eligible staff who wish to pursue other interests or careers elsewhere”.
Sir Gerry’s announcement blames the planned cuts and changes on a decline in the number of international students, as well as rising operational costs.
The median wage of all 1,652 University of Stirling employees is £45,053.
Thirty staff members are deemed “higher paid” and make between £100,000 and £229,999 per year.
Ten people take home salaries of between £130,000 and £139,999 annually, and six make between £140,000 and £149,999.
Collectively, the university pays these 30 individuals more than £4m per year.
A spokesperson for the University of Stirling said: “In common with the wider higher education sector, we continue to navigate a challenging external environment – including sustained year-on-year reductions in public funding, restrictive government immigration policies, and intense competition in the global higher education sector.
“The issues facing the higher education sector are deep-rooted, structural and sustained.
“Therefore, in keeping with our commitment to provide good governance and responsible financial stewardship, we are taking further steps to ensure our income and expenditure remain sustainably aligned so that we can continue to deliver on our strategic ambitions.”
Elsewhere in Scotland, Dundee University’s recovery from its near financial collapse is set for further scrutiny by Holyrood’s education committee.
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